Mahanagar Gas (MGL) Q2 26/27 earnings summary

Executive summary

• Q2 sales volume rose 6.49% YoY to 4.89 MMSCMD, led by CNG and domestic PNG; industrial and commercial sales declined amid supply restrictions and higher gas costs.

• Q2 FY27 net revenue rose 23.80% YoY to ₹2,537.08 crore, while EBITDA fell 9.82% to ₹304.76 crore and PAT fell 29.13% to ₹137.04 crore.

• H1 FY27 revenue rose YoY, but EBITDA and PAT declined; management expects stronger volume growth if gas availability and pricing normalize.

Financial highlights

• Q2 standalone revenue from operations was ₹2,776.74 crore; PAT was ₹137.03 crore, including a ₹17.33 crore exceptional impairment charge.

• Q2 standalone EBITDA before exceptional items was ₹304.76 crore, 12.01% of net revenue, versus ₹342.98 crore and 14.46% QoQ.

• H1 standalone revenue from operations rose 18.50% YoY to ₹5,374.63 crore; PAT declined 35.52% to ₹330.73 crore.

• H1 standalone EBITDA before exceptional items fell to ₹647.73 crore from ₹838.66 crore YoY; margin declined to 13.20% from 20.30%.

• H1 FY26 net revenue included a ₹112.87 crore reversal of prior-period trade margin, affecting the YoY comparison.

Outlook and guidance

• With normalized gas availability and pricing, volume growth is expected to exceed 8%-9% in FY27 and FY28; current sales growth was cited at 9%-10%.

• FY27 unit EBITDA was ₹6.77/SCM; ₹7/SCM was described as achievable with ₹1-₹1.5 price increases if other factors remain unchanged.

• FY27 CapEx guidance remains ₹1,500-₹1,800 crore; execution faces labor and material constraints, while EBITDA margin guidance remains difficult amid volatile supply and prices.